2003 AGN JUN 03 I14 - Laserfiche WebLink

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Item #14 CITY OF COLTON AGENDA REPORT For City Council Meeting of June 3, 2003 TO: Honorable Mayor and Members oftheCity Council FROM: Dilu De Alwis, Finance Director fib" SUBJECT: Award a 36 -Month Lease/Rental Agreement for Copiers for the Police Department to Minolta Business Solutions, Inc. for an Annual Amount of $21,515.52 DATE: May 20, 2003 BACKGROUND The Police Department is replacing two copiers that are over eight -years old and one that is currently being leased that is five -years old. These leases have expired and the Police Department is requesting to upgrade their copiers to take advantage of the new technology that is available today. The three-year lease/rental of the new copiers will result in an overall savings as well as increased efficiency. The annual amount includes all maintenance and supplies for the three copiers, including staples. DISCUSSION/ANALYSIS On October 10, 2002, the County of San Bernardino sent out a Request For Proposal for a copier contract. The contract was awarded on February 11, 2003, by the Board of Supervisors. Section 3.08.100 of the City's Purchasing Ordinance allows the City to enter into agreements with other agencies for the purchase of supplies, services and equipment. In such instances, the procedures of that agency shall satisfy all city requirements for the bid and award of those purchases. The City of Colton can piggyback onto the San Bernardino County RFP #P-7. This will save the City the cost of the formal bid process and allow us to take advantage of the volume discount afforded to San Bernardino County. ALTERNATIVES The City could continue to lease these copiers at the same lease payment, or purchase them at fair market value, however, these machines are over five years old and the technology has become obsolete. The cost of maintenance on older copiers increases each year, which makes the continued lease or purchase of the existing machines not very cost effective when you can have increased productivity from the new technology at a lower overall price. FINANCIAL IMPACT The funds of $15,050.52 are budgeted in the Police Department equipment rental account number 100-6070-6080-2420 and the funds of $6,465 are budgeted in their equipment maintenance account number 100-6070-6080-2240.